King Charles, royal family's public funding rate was cut by more than half due to $1.3 billion wind farm profits on his lands.
King Charles III and the royal family's rate of public funding was cut by more than half due to rising profits generated by offshore wind farms on the Crown Estate.
The U.K. Treasury announced Thursday it will reduce the proportion of the Crown Estate's net profits received by the royals to 12% next year, down from 25% in recent years.
The amount of money provided to the monarchy through the annual Sovereign Grant will remain the same at £86 million ($111 million). However, the newly adjusted rate will result in the royals receiving £300 million ($386 million) less over the next three years than they would have if the rate had remained at 25%.
However, King Charles III and the rest of the royal family are set to get a raise despite some changes in how the money paid to the royals by the UK government is calculated. Royals’ allowances will likely jump significantly in the years to come, CNBC reported, citing a review of the annual Sovereign Grant.
For 2022/2023, the grant was worth about $96 million, the same it was for the previous year. The amount will remain steady for 2024/2025, but is expected to rise after that, the BBC reported.
The eye-popping amounts, which do not account for all of the royals’ income, are determined with a formula based on the percentage of the profits from the Crown Estate.
That’s the name for the vast collection of hereditary assets that belong to the monarch, from Buckingham Palace in London to Balmoral Castle in Scotland, where Queen Elizabeth II died last year, and multiple other estates along with extensive portions of the coastline and seabed of Britain, Wales and Northern Ireland. All told, the portfolio is worth $20.5 billion.
Six new offshore wind farms, worth about $1.1 billion, generated "substantial additional income" and helped drive up the total value of the estate in recent years.
Sounds like a win-win to me!
Have a great day!
Prof. Carl Boniface